Children's group: Commission 'uncomfortable' about child benefit tax

The Commission on Taxation is "clearly uncomfortable in issuing its recommendation to tax child benefit", according to The Children’s Rights Alliance.

The group pointed out that the commission urged in its report today "the need to benchmark against alternatives".

Jillian van Turnhout, Chief Executive of the Children’s Rights Alliance said: "It speaks volumes that this timid recommendation is couched in caveats, with the hesitant commission, in an unusual move, advising the Government to consider potential legal, policy, implementation and employment disincentive issues before considering the move.

"The Alliance also notes with concern the proposals in relation to childcare, which is an area that is already heavily under-resourced and under-developed.

The Children’s Rights Alliance met with the Commission on Taxation to outline its concerns and arguments against the taxation of child benefit.

"On reading this report," said Ms Turnhout, "I am pleased that the alliance’s concerns were taken on board, with the commission providing counsel to Government to explore the issue further 'to ascertain the most effective method of achieving the aims and objectives of the child benefit programme'."

"The Report also catalogues the legal and policy challenges of taxing child benefit. This is no quick-fix solution that will lead us out of recession. It will take years for the system to be set up, requiring a complete overhaul of our tax and welfare systems.

"And it has proved a disaster for the UK Government when they went down this road over the last ten years. How will they ensure that our larger families won’t be penalised? And how will we overcome the legal issues?"